TAV Airports reports 55 percent net profit rise in record results mainly in Antalya
In a statement on July 27, the company noted that these record high results, mainly thanks to a significant international tourist arrival to the Antalya Airport, enabled it to increase its net profit 55 percent to 93 million euros.
After the company announced its first half results and revised up its 2018 forecasts, TAV Airports stocks in Borsa Istanbul rose 14 percent in early trading to 31.84 Turkish Liras.
“2018 is a year of records for most of the airports that we operate, which are at all-time highs in international passenger numbers. In the first six months of 2018, we achieved a 31 percent surge in our passenger numbers, thanks to strong growth in international traffic and the addition of Antalya. We started operations at Antalya Airport in May 2018, and even excluding the inorganic contribution from Antalya, we achieved a 16 percent passenger growth [like-for-like growth],” said TAV Airports Holding Executive Board Member and CEO Sani Şener.
He added that the company crowned the record passenger numbers with all time high financial results for the first half of 2018.
“Our revenue increased 8 percent and reached 550 million euros. Our EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortization] increased 25 percent and reached 254 million euros and our net income increased 55 percent, hitting 93 million euros,” Şener noted, adding that the company invested in 15 airports that it operated.
The company derived some 15 percent of its revenues from its international operations, according to the statement.
In regard to strong first half results, the company has revised up its 2018 expectations.
“Antalya Airport is the second largest airport in Turkey in terms of international passengers and has tremendous growth potential. Following the addition of Antalya Airport into our portfolio, we revised guidance as more than 30 percent growth in total TAV passengers, 8 to 10 percent growth in Istanbul Atatürk Airport international passengers, 11 to 13 percent growth in Atatürk Airport international O&D [Origin/Destination] passengers, 4 to 6 percent growth in consolidated revenue, 14 to 16 percent growth in EBITDA, significant increase in net profit and around 120 million euros in capital expenditures; subject to our traffic and FX assumptions, with the inclusion of Antalya Airport since May 2018 and assuming Atatürk Airport will operate for the full year in 2018,” Şener said.
In the first half of 2018, the company agreed with its partner Turkish Airlines to extend their partnership in TGS for 15 more years, according to the statement.